Eurizon Capital SGR S.p.A. Makes New Investment in Reddit Inc. $RDDT

Key Points

• Eurizon Capital SGR disclosed a new fourth-quarter stake in Reddit, buying 9,826 shares valued at about $2.26 million.
• Reddit stock was down 5.1% in Wednesday trading, opening at $168.85, while the company remained well above its 52-week low and below its high.
• Reddit’s latest earnings beat expectations, with $1.01 EPS on $663.4 million in revenue, and analysts still maintain a Moderate Buy consensus with a $228.61 average target price.

Eurizon Capital SGR S.p.A. bought a new position in Reddit Inc. (NYSE:RDDT - Free Report) during the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 9,826 shares of the company's stock, valued at approximately $2,259,000.

Several other hedge funds also recently bought and sold shares of RDDT. Vanguard Group Inc. raised its holdings in Reddit by 12.9% in the third quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company's stock worth $2,814,734,000 after purchasing an additional 1,401,293 shares during the period. Invesco Ltd. raised its holdings in Reddit by 419.0% in the third quarter. Invesco Ltd. now owns 1,487,941 shares of the company's stock worth $342,212,000 after purchasing an additional 1,201,237 shares during the period. State Street Corp raised its holdings in Reddit by 138.5% in the second quarter. State Street Corp now owns 2,030,139 shares of the company's stock worth $305,678,000 after purchasing an additional 1,178,890 shares during the period. AQR Capital Management LLC acquired a new stake in Reddit in the second quarter worth $80,052,000. Finally, Bank of America Corp DE raised its holdings in Reddit by 38.4% in the third quarter. Bank of America Corp DE now owns 1,724,560 shares of the company's stock worth $396,632,000 after purchasing an additional 478,095 shares during the period.

Reddit Stock Down 5.1%

Shares of NYSE:RDDT opened at $168.85 on Wednesday. Reddit Inc. has a 12 month low of $109.92 and a 12 month high of $282.95. The company's fifty day simple moving average is $150.34 and its 200 day simple moving average is $177.84. The firm has a market cap of $32.51 billion, a price-to-earnings ratio of 48.24 and a beta of 1.91.

Reddit (NYSE:RDDT - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.01 EPS for the quarter, topping analysts' consensus estimates of $0.62 by $0.39. Reddit had a net margin of 28.60% and a return on equity of 25.48%. The business had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same period last year, the business posted $0.13 earnings per share. The firm's quarterly revenue was up 69.1% on a year-over-year basis. Research analysts expect that Reddit Inc. will post 4.83 earnings per share for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction on Friday, May 29th. The shares were sold at an average price of $174.13, for a total value of $3,134,340.00. Following the sale, the chief executive officer directly owned 373,814 shares in the company, valued at approximately $65,092,231.82. The trade was a 4.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction on Monday, May 18th. The shares were sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the completion of the sale, the chief operating officer owned 1,088,451 shares in the company, valued at $172,541,252.52. The trade was a 3.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 259,999 shares of company stock worth $39,812,508. Insiders own 28.48% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. JPMorgan Chase & Co. cut their target price on shares of Reddit from $227.00 to $200.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. Oppenheimer reiterated an "outperform" rating and issued a $225.00 target price on shares of Reddit in a report on Friday, May 1st. Guggenheim increased their target price on shares of Reddit from $245.00 to $255.00 and gave the stock a "buy" rating in a report on Friday, February 6th. Needham & Company LLC reiterated a "buy" rating and issued a $300.00 target price on shares of Reddit in a report on Friday, May 1st. Finally, DA Davidson restated a "buy" rating and set a $200.00 price objective on shares of Reddit in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $228.61.

Reddit Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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